Realty sector eyes tax relief for homebuyers, higher urban infra allocations from Budget: Nahar Group's Vice Chairperson

The real estate sector is optimistic about the Union Budget 2026. According to Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO, Maharashtra, key expectations include tax rationalisation for homebuyers, higher allocations toward urban infrastructure, and policy support that improves liquidity and enables long-term capital formation. Yagnik says a focused push toward affordable and mid-income housing can create a strong multiplier effect across employment, consumption, and allied industries.

Edited excerpts:

What are the key expectations of the real estate sector from Budget 2026?

Budget 2026 presents an important opportunity to reinforce housing-led growth at a time when India continues to stand out as one of the world’s fastest-growing major economies.

As the government balances fiscal prudence with growth imperatives, the real estate sector looks for measures that sustain investment momentum and improve affordability.

Key expectations include tax rationalisation for homebuyers, higher allocations toward urban infrastructure, and policy support that improves liquidity and enables long-term capital formation.

A focused push toward affordable and mid-income housing can create a strong multiplier effect across employment, consumption, and allied industries.

Speculations suggest possible tax relief for homebuyers under the new income tax regime. How could this impact the housing sector?

Any tax relief for homebuyers under the new tax regime would act as a meaningful demand catalyst.

Home ownership is a long-term financial commitment, and even incremental relief on interest or principal repayment can significantly enhance affordability.

Such measures would particularly benefit first-time buyers and salaried households, encouraging fence-sitters to enter the market.

This could translate into stronger absorption across residential segments and reinforce the ongoing shift toward end-user-driven demand.

Should the government redefine affordable housing by increasing the price cap? What would that mean for the segment?

There is a strong case for revisiting the definition of affordable housing, especially in large urban centres.

The current price and size thresholds were appropriate when introduced, but rising land prices, construction costs, and compliance requirements have altered market realities.

Updating the cap to around ₹80–90 lakh and allowing slightly larger unit sizes would better reflect contemporary urban living needs.

This is not about promoting luxury housing, but about making well-designed, family-sized homes accessible within city limits.

A revised framework could expand the pipeline of viable projects and unlock both supply and genuine end-user demand in the mid-income segment.

What is the outlook for India’s real estate market in the coming years?

The medium- to long-term outlook for India’s real estate market remains positive.

Structural drivers such as urbanisation, infrastructure expansion, rising incomes, and evolving lifestyle preferences continue to underpin demand.

While global uncertainties and interest rate cycles may lead to short-term fluctuations, residential demand driven by end users remains resilient.

Policy continuity, improving transparency, and sustained economic growth are likely to support steady momentum across key markets.

What are the key challenges facing the sector, and how can they be addressed?

Key challenges include elevated input costs, extended approval timelines, and limited access to affordable financing, particularly for mid-sized developers.

Streamlining approvals through digitisation, improving credit availability, and ensuring regulatory clarity can go a long way in addressing these constraints.

Continued focus on ease of doing business and predictable policy frameworks will help improve efficiency, reduce project delays, and strengthen overall sector confidence.

How is the growing focus on green living shaping real estate development?

Green living is increasingly becoming central to real estate planning and development.

Homebuyers today are placing greater value on healthier living environments that offer open spaces, better air quality, ample natural light, and greener surroundings.

This shift is encouraging the creation of people-centric communities that support both physical and mental well-being.

As green living moves from being an added feature to a core planning principle, it is helping the industry deliver long-term livability and lasting value, making it a positive structural shift for the sector.